COMMISSIONER OF GIFT TAX Vs. POTHEN CHACKO

JUDGEMENT

(1.) AT the instance of the Revenue, the following two questions of law are referred by the Income-tax Appellate Tribunal, Cochin Bench, Ernakulam, under Section 26(1) of the Gift-tax Act, 1958, for the decision by this court:

(2.) THE matter arises under the Gift-tax Act, 1958. THE assessment year concerned is 1987-88. THE assessee gave a sum of Rs. 2 lakhs to his daughter at the time of her marriage on November 8, 1986. He did not file any return of gift-tax for the assessment year 1987-88. THE assessing authority issued a notice under Section 16(1) of the Act on March 12, 1991. In spite of the said notice, the assessee did not file any return. THE assessing authority, therefore, completed the assessment in respect of the gift of Rs. 2 lakhs after exempting a sum of Rs. 10,000 under Section 5(1)(vii) of the Act. THE assessee took up the matter in appeal before the Deputy Commissioner of Gift-tax (Appeals), Thiruvananthapuram, who allowed the same by holding that the daughter had a legal right to receive the amount. THE assessee had also raised an alter- native contention before the first appellate authority that the amount of Rs. 2 lakhs given by him to his daughter was in fact given on behalf of the assessee, his wife and son. Since the appeal of the assessee was allowed, this contention was not considered by the first appellate authority. THE Department took up the matter in appeal before the Tribunal. Relying on an earlier decision of the Tribunal in G. T. A. No. 23/Coch. of 1991 in the case of M. C. George, Kotta-rakkara, the Departmental appeal was dismissed.

(3.) IN view of the decision of this court in CGT v. M. C. George [2002] 253 ITR 363, the questions of law extracted in para. 1 of this judgment are to be answered in the negative, i.e., against the assessee and in favour of the Revenue. We answer the two questions accordingly.